Blue Lights Co ? If the Total Cost Markup Percentage Per Unit Is

question 66

Multiple Choice

Blue Lights Co.uses the total cost concept of applying the cost-plus approach to product pricing.The costs of producing and selling 5,000 units are as follows: $\begin{array}{lr}\text {Fixed factory overhead cost }&\$60,000\\\text {Fixed selling and administrative costs }&120,000\\\text { Variable direct materials cost per unit}&80\\\text {Variable direct labor cost per unit }&150\\\text {Variable factory overhead cost per unit }&50\\\text {Variable selling and administrative cost per unit }&30\\\end{array}$
? If the total cost markup percentage per unit is 5.5%, determine the selling price per unit of the company's product.

• A) $346
• B) $692
• C) $365
• D) $677

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